U.K. Business Confidence Fell to Record Low in August, BDO Says
U.K. business confidence fell to a record low last month and a gauge of output indicated that the economy is set to remain weak, according to BDO LLP.
The sentiment gauge fell to 89.1 from 93.1 in July, the accountancy firm said in a report today in London. That’s the lowest since the series began in 1992. The output measure dropped to 90.8 from 93.9, further below the 95 mark that points to positive growth one quarter ahead. BDO said the decline suggests growth “is likely to remain elusive in the final quarter.”
“Difficult business conditions look increasingly likely to prevail into 2013,” BDO said. “This is the sixth consecutive decline in business confidence as the euro-zone crisis continues unresolved and domestic demand remains weak.”
Separately, a survey by Lloyds Bank showed Britons’ assessment of employment prospects rose to minus 43 last month from minus 51 in July. Lloyds’ index of consumers’ job security increased 5 points to minus 14. In another report, KPMG LLP and the Recruitment and Employment Confederation said their index of hiring of full-time staff rose to 48.4 in August from 47.3 in July. Readings below 50 indicate contraction.
The BDO indexes are calculated by the Centre for Economics and Business Research from a weighted average of all the U.K.’s main business surveys in past month.
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